Auto parts manufacturer ArvinMeritor Inc. completed the $27-million divestiture of its Body Systems business to an affiliate of Inteva Products LLC. ArvinMeritor said the closing price consists of $12.27 million in cash and a promissory note for $15 million, and is subject to adjustment.
When the sale agreement was announced in August ArvinMeritor reported a sale price of approximately $35 million.
"Completing this sale is an important milestone for ArvinMeritor," stated chairman, CEO, and president Chip McClure. "This transaction completes our transformation, and will further our ability to achieve our financial goals with the continued strengthening of our core operations in the global commercial vehicle and industrial markets."
ArvinMeritor has been in a restructuring process for about three years. It divested its automotive wheels business in 2009, and spent more than a year seeking a buyer for the Body Systems unit. Both units had formerly comprised ArvinMeritor’s Light Vehicle Systems subsidiary, but its effort to sell that business unit as a whole were unsuccessful.
The sale means ArvinMeritor is concentrated now in the commercial and industrial vehicles segment, manufacturing systems, modules and components to OEMs and the aftermarket. Its products include axles, brakes, and suspension systems for automotive OEMs and the transportation and industrial vehicle aftermarkets.
The business being divested has over 4,100 employees in 16 countries.
Inteva Products designs, engineers, manufactures, and assembles interior systems, integration systems, access control systems, door systems, roof systems, electronics and motor systems, and advanced materials and processes for automotive OEMs worldwide.